Which nontraded REIT program used convertible preferred shares for which the sponsor had paid $48,000 and that resulted in the payment of approximately $5.8 million in cash and the issuance of approximately 3.0 million shares of the listed company after a full-cycle event? Apple REIT Ten merged with Apple Hospitality and the sponsor received roughly…

Blue Vault wishes you a very Merry Christmas and a Happy New Year. The Blue Vault office closed at 1:00pm EST today and will reopen on Tuesday, December 27. The office will also close at 1:00pm EST on Friday, December 30 and reopen on Monday, January 2, 2017. The Blue Vault NewsWire will not be…

What are “OP Units” in a nontraded REIT offering prospectus? [caption id="attachment_11492" align="alignnone" width="600"] Looking over an investment annual report.[/caption] Operating Partnership Units are authorized by the board of directors and issued to managers to give them an incentive to maximize shareholder values.  They are convertible into common shares under certain conditions.

What do the designations of “Class W” and “Class I” common shares signify? Class W common shares are sold to investors who have “wrap accounts” and Class I shares are available to institutional investors.

Two nontraded BDCs have a focus on real estate-related investments. Terra Income Fund 6, Inc. and MacKenzie Realty Capital have different investing strategies, but both focus on real estate-related investments. Terra Income Fund 6 is sponsored by Terra Capital Partners. Learn more about Terra Capital Partners on our Sponsor Focus page.   Click Here  …

What are the two methods that nontraded REITs may choose to report their per share estimated NAVs under the FINRA 15-02 ruling? The two methods are the “net investment” method based on the “amount available for investment” as stated in the offering prospectus, or the “appraised value methodology.”

When calculating the average rate of return over the life of a nontraded REIT program, which group of investors have the higher average rate of return when a program has a full-liquidity event and an associated capital gain on its common shares? When there is a capital gain on a nontraded REIT’s common shares, those…

There are two nontraded BDCs that have a no-load share structure. Carey Credit Income Fund – I and Credit Suisse Park View BDC, Inc. both are no-load nontraded BDCs.   Learn more about these BDCs on their Sponsor Focus Pages: W.P. Carey - Carey Credit Income Fund – I Credit Suisse Asset Management (CSAM), LLC - Credit…

Why might the average selling commission percentage for a public offering of nontraded REIT shares be lower than the commission rate quoted for a $500,000 investment? Most programs offer a sliding scale of commission rates for larger purchases, resulting in a lower average selling commission rate for the offering.